Wsp Global Inc · TSX:WSP
Wsp Global — Q1 2020 Earnings Presentation
25 slides from Wsp Global's earnings presentation, May 6, 2020
Slide 1: Q1 2020 Results
Q1 2020 Results May 6th, 2020
Slide 2: Cautionary Statement and Non-IFRS Measures
Q1 2020 Results CAUTIONARY STATEMENT AND NON-IFRS MEASURES CAUTIONARY STATEMENT — Certain information regarding WSP contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, objectives, expectations, opinions, forecasts, projections, guidanc
Slide 3: Our Response to COVID-19
Q1 2020 Results OUR RESPONSE TO COVID-19 • Business continuity plans into full effect • Leverage our technology investments • Continue to serve our 3 clients with agility • Assisting our Healthcare clients globally to provide rapid responses to the pandemic
Slide 4: Good Operational Performance in Line with Expectations
Q1 2020 Results GOOD OPERATIONAL PERFORMANCE IN LINE WITH EXPECTATIONS ✓ Positive organic growth : 1.1% for Q1 2020 ✓ Adjusted EBITDA margin* in line with expectations 4 ✓ Strong backlog* growth with $8.5B or 11.1 months of revenue ✓ Solid balance sheet *Non-IFRS measures. These measures are defined
Slide 5: Q1 Context
Q1 2020 Results Q1 CONTEXT Uncertainty COVID-19 in the United Kingdom 5 Q1 2020 Depressed One less billable oil & gas industry day in Q1 2020
Slide 6: Q1 2020 Overview
WSp Q1 2020 Overview
Slide 7: Canada
Q1 2020 Results CANADA • 0.6% organic contraction in net revenues by segment • 15.3% adjusted EBITDA margin by segment • Backlog* organic growth of 0.1% compared to Q4 2019 • Backlog* organic growth of 8.0% compared to Q1 2019 Net revenues breakdown – Q1 2020 Environment Industry 18% 4% Resources 7
Slide 8: Americas
Q1 2020 Results AMERICAS • 1.5% organic growth in net revenues by segment • 13.4 % adjusted EBITDA margin by segment • Backlog* organic growth of 0.8% compared to Q4 2019 • Backlog* organic growth of 2.6% compared to Q1 2019 Net revenues breakdown – Q1 2020 Infrastructure 64% Power + Energy 8 3% Res
Slide 9: EMEIA
Q1 2020 Results EMEIA • 0.6% organic growth in net revenues by segment • 13.2% adjusted EBITDA margin by segment • Backlog* organic growth of 13.5% compared to Q4 2019 • Backlog* organic growth of 4.3% compared to Q1 2019 Net revenues breakdown – Q1 2020 Environment Buildings 9% 35% Industry 9 3% Po
Slide 10: APAC
Q1 2020 Results APAC • 3.3% organic growth in net revenues by segment • 15.0% adjusted EBITDA margin by segment • Backlog* organic growth of 0.5% compared to Q4 2019 • Backlog* organic growth of 13.2% compared to Q1 2019 Net revenues breakdown – Q1 2020 10 Infrastructure 49% Buildings Power + 34% En
Slide 11: Q1 2020 Key Events
WSp Q1 2020 Key Events
Slide 12: Major Q1 2020 Project Wins - Americas
Q1 2020 Results MAJOR Q1 2020 PROJECT WINS - AMERICAS U.S Navy waterfront projects within the Naval Facilities Engineering Command’s northwest area of operations 12 • Great example of the revenues synergies resulting from the integration of Louis Berger into our US operations • Awarded a USD$ 100M c
Slide 13: Major Q1 2020 Project Wins - Canada
Q1 2020 Results MAJOR Q1 2020 PROJECT WINS - CANADA City of Toronto’s Watermain Rehabilitation Program • Three-year assignment • One of the largest watermain 13 structural lining programs in North America • Total of approximately $19 million in fees
Slide 14: Major Q1 2020 Project Wins - EMEIA
Q1 2020 Results MAJOR Q1 2020 PROJECT WINS - EMEIA Highways England’s brand-new Smart Motorways Alliance. • Confirms our position as 14 a trusted delivery partner to Highways England • The value of the Alliance is £4.5B over ten years for the six partners
Slide 15: Continued Investment in Environment
Q1 2020 Results CONTINUED INVESTMENT IN ENVIRONMENT LT Environmental Inc. • 140 employees • Environmental Consulting Firm 15 • Based in Colorado, US Added 1470 employees to our Environment platform since January 2019 16% growth in headcount since 2018
Slide 16: Delivering on Our Sustainability Ambitions
Q1 2020 Results DELIVERING ON OUR SUSTAINABILITY AMBITIONS — First Professional Services Firm to Sign Sustainability- Linked Syndicated Credit Facility in the Americas. — We amended our existing $1,200 USD million syndicated revolving credit facility with terms up to 4 16 years, to include an annual
Slide 17: Q1 2020 Financial Performance
Q1 2020 Financial Performance
Slide 18: Revenues and Net Revenues
Q1 2020 Results REVENUES AND NET REVENUES* REVENUES NET REVENUES* +1.7% 2 210.0 2 173.6 +4.4% 18 1 736.1 1 663.4 Q1 Q1 Numbers are quoted in million of dollars (except percentages). *Non-IFRS measure. This measure is defined in section 20, “Glossary of non-IFRS measures and segment reporting measure
Slide 19: Backlog
Q1 2020 Results BACKLOG* 8 481.0 +5.3% Backlog organic 8 131.8 growth from Q1 2019 7 952.7 7 905.7 19 7 873.1 7 678.7 +3.7% Backlog organic growth from Q4 2019 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Numbers are quoted in million of dollars (except percentages). * Non-IFRS measure. This meas
Slide 20: Profitability
Q1 2020 Results PROFITABILITY EARNINGS BEFORE NET FINANCING EXPENSE ADJUSTED EBITDA* ($) AND ADJUSTED EBITDA MARGIN* (%) AND INCOME TAXES +0.7% - 8.2 % 216.9 218.4 20 95.9 88.0 13.0 % 12.6 % Q1 Q1 2019 2020 Numbers are quoted in million of dollars (except percentages). * Non-IFRS measure. This measu
Slide 21: Net Earnings
Q1 2020 Results NET EARNINGS NET EARNINGS ATTRIBUTABLE TO SHAREHOLDERS ADJUSTED NET EARNINGS* ($ and per share) ($ and per share) 63.6 56.4 47.5 $0.61 per share $0.54 21 per share $0.45 per share 14.2 $0.13 per share Q1 2019 2020 Q1 The decrease is mainly attributable to: 1. Extreme market volatilit
Slide 22: Financial Position
Q1 2020 Results FINANCIAL POSITION Q1 2020 Long-term debt $2,274.9 Less: Cash and cash equivalents ($908.9) 22 Net debt* $1,366.0 Adjusted EBITDA* $1,038.3 Net debt/adjusted EBITDA ratio* 1.3x Numbers are quoted in million of dollars (except percentages). * Non-IFRS measure. This measure is defined
Slide 23: Days Sales Outstanding (DSO)
Q1 2020 Results DAYS SALES OUTSTANDING (DSO)* 80 80 78 77 76 23 74 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 * Non-IFRS measure. This measure is defined in section 20, “Glossary of non-IFRS measures and segment reporting measures” and reconciliations to IFRS measures can be found in section 9,
Slide 24: Underlying principles remain very much relevant
Q1 2020 Results Even though our 2019-2021 may be impacted, the underlying principles remain very much relevant in the context of these unprecedented times. Our aim remains We will strive to we will continue to be a top-tier provide an to build upon our All in view of 24 Our clients player in every e
Slide 25: Q&A
Q&A